FIIs Pull Out Rs 1.16 Lakh Crore in Two Months

18 Nov 2024 , 04:52 PM

Even while foreign institutional investors (FIIs) have been selling over the past 1.5 months, which has caused the Indian benchmark indexes to correct by 8–9%, the outflows only account for around 1% of foreign ownership in local stocks.

Additionally, 83% domestic ownership and high retail demand provide a buffer for the local markets.

FIIs were net buyers of Indian stocks till September of 2024, but they have since turned into net sellers of Rs 15,827 crore. As of Thursday, November 14, 2024, they have net sold domestic shares totalling Rs 1.16 lakh crore since October.

“Domestic retail appetite remains strong, off-setting foreign jitters,” CLSA wrote in a note, highlighting the significance of the “highest proportion” of local ownership for Indian markets in emerging economies.

According to Tata Mutual Fund, the rotation from India to China has been the cause of FII outflows since Indian markets appeared to be comparatively more costly and had poor Q2 results. Although it believes that the change may have an even greater effect on inflows into developing nations like India, the recent withdrawals only account for around 1% of foreign ownership of Indian stocks, the report stated.

“The Q2 FY25 earnings season did not live up to the hype. From 12% growth at the beginning of the year to 6% as of early November 2024, earnings projections for the current fiscal year have been slashed by 50%.

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